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A DCUSA Party may apply in writing to the DCUSA Panel for a derogation, i.e. permission to not comply with a clause / section in the DCUSA for a specified period of time. Derogations will usually only be granted in respect to new clauses introduced or changes which have altered obligations under the DCUSA which the Party is not able to implement before the effective date. An exception to this may be due to unforeseen circumstances, such as the Covid-19 pandemic and the consequences of the lockdown measures introduced.

How do I submit a derogation request?

If you are a DCUSA Party that wishes to submit a derogation request, you should complete the Derogation Application form which can be found here. The application form requests the following information:

  • Details of the specific obligation(s) you are seeking a derogation from.
  • Reasons for why the derogation is sought.
  • Description of the conditions of the derogation (i.e. the extent to a derogation is requested / whether a less onerous obligation will be met for the period of the derogation).
  • Details of the anticipated impact on the costs and operations of other parties.
  • Details of the action you will take to become compliant with the obligation including dates of any key milestones associated with these actions.
  • Period of time for which the derogation is sought.

Once completed you should send your derogation request to [email protected].

What happens once a derogation application has been submitted?

Once a derogation request has been received a member of the DCUSA team will liaise with you to ensure that all the required information has been captured. The following steps are then completed:

  • Details of the derogation request are circulated to all DCUSA Contract Managers and Ofgem inviting representations or objections with respect to the derogation for a period of 10 working days. The derogation and all responses are published on the DCUSA Website, unless marked as confidential.
  • The derogation is added to the agenda for the next DCUSA Panel meeting occurring more than 10 Working Days after receipt of such application. Depending on the nature of the derogation request, an ex. committee DCUSA Panel meeting may be arranged.
  • The Panel will review the derogation and may, if appropriate, resolve to retract any derogation, or to amend or add to the conditions applicable to any derogation. A derogation granted to any Party by the Panel, or any retraction, amendment, or addition, shall, in each case, only be effective if made in conformity with any representations received from the Authority.
  • If the Panel approves a derogation request, the derogation will come into effect from the agreed date unless vetoed by the Authority within 10 Working Days of notification. The Authority can only veto a Panel decision to grant a derogation. If the Panel reject a derogation request, the process ends as there is no right of appeal.
  • The final decision for a derogation request is emailed to all DCUSA Contract Managers and the Authority and is published on the DCUSA website.

Within the DCUSA document, the relevant section regarding derogations is covered in Clause 56.

If you require any further information or assistance before submitting a derogation request, please feel free to contact the DCUSA team at the email address above.